Wait for the resources to load and then press install. IMPORTANT!!! Remember that you dont have space yet to install anything new, so first you are going to have to uninstall some apps. Then Search for the category that says utilities

Press where it says to Move Apps (already moved the apps in my ipod so the pic isnt what your ipod is going to look like. Dont worry about the Big RED cancel button when you attempt to move your apps NOTHING BAD IS GOING TO HAPPEN. When your done it should look something like this